Monday, 06 Feb 2012
A government official from the Central African nation's government told Reuters that Gabon and mining firm BHP Billiton have reached a deal over the Belinga iron ore concession in Gabon.
Mr Sosthene Nguema Nguema a member of Gabonese government delegation in charge of overseeing the Belinga project, said the concession had been removed from China's CMEC as the company, which was awarded the license in 2007, did not have sufficient expertise to mine the resource.
BHP Billiton declined to comment but Mr Nguema said an official agreement would be signed soon, without giving any further details.
(Sourced from Reuters)
Showing posts with label deal. Show all posts
Showing posts with label deal. Show all posts
Monday, February 6, 2012
Saturday, January 28, 2012
Dollar fall boosts Euro coal prompt prices
Saturday, 28 Jan 2012
Reuters reported that US dollar fell to its lowest for almost two months on Thursday, giving a sharp boost to coal prices which have sagged this month due to weak fundamentals globally.
Two March loading South African cargoes traded early in the day at USD 108.50 and USD 108.75, up over USD 3.00 from Wednesday, bought by banks and traders, sold by a large, international trading house.
Coal swaps rallied on Thursday, bolstered by European utilities hedging dark spreads (the profit margin from using coal to generate power) and oil's rise, despite the lack of physical buying and high stockpile levels.
End users in Europe and Asia remained noticeable for the absence from the market.
Traders said that whether China resumes large scale spot buying after the New Year holidays is absolutely critical for coal price direction, regardless of the gyrations of the swaps market.
China overtook Japan as the world's largest coal importer last year after a surge in imports in the last quarter to a total of 182.4 million tonnes, nearly 11 percent up from the previous year, much of it bought on a spot basis.
One European trader said that "The dollar got hammered overnight and that's pulled commodities up including coal, but the swaps, particularly the Calendar years, have risen even more.”
(Sourced from Thomson Reuters)
Reuters reported that US dollar fell to its lowest for almost two months on Thursday, giving a sharp boost to coal prices which have sagged this month due to weak fundamentals globally.
Two March loading South African cargoes traded early in the day at USD 108.50 and USD 108.75, up over USD 3.00 from Wednesday, bought by banks and traders, sold by a large, international trading house.
Coal swaps rallied on Thursday, bolstered by European utilities hedging dark spreads (the profit margin from using coal to generate power) and oil's rise, despite the lack of physical buying and high stockpile levels.
End users in Europe and Asia remained noticeable for the absence from the market.
Traders said that whether China resumes large scale spot buying after the New Year holidays is absolutely critical for coal price direction, regardless of the gyrations of the swaps market.
China overtook Japan as the world's largest coal importer last year after a surge in imports in the last quarter to a total of 182.4 million tonnes, nearly 11 percent up from the previous year, much of it bought on a spot basis.
One European trader said that "The dollar got hammered overnight and that's pulled commodities up including coal, but the swaps, particularly the Calendar years, have risen even more.”
(Sourced from Thomson Reuters)
Friday, January 27, 2012
Walter Energy may lure buyers willing to bet on a recovery in coal prices
Friday, 27 Jan 2012
Bloomberg reported that Walter Energy Inc may finally lure buyers willing to bet on a recovery in coal prices with the industry's cheapest stock.
According to data compiled by Bloomberg, after losing almost half its value in the past year, the producer of steelmaking coal sold for 9.3 times earnings this week. That was less than any North American coal mining company with USD 1 billion in market capitalization. The slide also drove down the value of Walter Energy to 1.7 times its net assets this month, the lowest since the last bear market in US equities.
While a surge in coal prices last year led to the biggest wave of coal deals, most acquirers were left with losses as demand for the commodity collapsed. Walter Energy, which bought Western Coal Corporation for USD 5.3 billion in April, is an attractive target because it produces high grade steelmaking coal. A buyer could spend double Walter Energy’s closing price of USD 67.54 a share yesterday and still get the company for less relative to earnings than any coal takeover in the past year.
Mr J Christopher Haberlin analyst at Davenport & Co said that "Now is the opportune time for a buyer to potentially start looking at them. It's some of the best coal in the world and it's what steelmakers want. If somebody did make a run at Walter here, certainly they could take Walter out a price much lower than where that valuation may have been."
Walter Energy may attract interest from BHP Billiton Limited, Anglo American Plc or ArcelorMittal, and could command as much as USD 120 a share in an acquisition.
(Sourced from www.bloomberg.net)
Bloomberg reported that Walter Energy Inc may finally lure buyers willing to bet on a recovery in coal prices with the industry's cheapest stock.
According to data compiled by Bloomberg, after losing almost half its value in the past year, the producer of steelmaking coal sold for 9.3 times earnings this week. That was less than any North American coal mining company with USD 1 billion in market capitalization. The slide also drove down the value of Walter Energy to 1.7 times its net assets this month, the lowest since the last bear market in US equities.
While a surge in coal prices last year led to the biggest wave of coal deals, most acquirers were left with losses as demand for the commodity collapsed. Walter Energy, which bought Western Coal Corporation for USD 5.3 billion in April, is an attractive target because it produces high grade steelmaking coal. A buyer could spend double Walter Energy’s closing price of USD 67.54 a share yesterday and still get the company for less relative to earnings than any coal takeover in the past year.
Mr J Christopher Haberlin analyst at Davenport & Co said that "Now is the opportune time for a buyer to potentially start looking at them. It's some of the best coal in the world and it's what steelmakers want. If somebody did make a run at Walter here, certainly they could take Walter out a price much lower than where that valuation may have been."
Walter Energy may attract interest from BHP Billiton Limited, Anglo American Plc or ArcelorMittal, and could command as much as USD 120 a share in an acquisition.
(Sourced from www.bloomberg.net)
Thursday, January 26, 2012
Ms Rinehart fortune to soar on POSCO deal
Thursday, 26 Jan 2012
Australia's richest person, iron ore magnate Ms Gina Rinehart could see her fortune nearly double to AUD 20 billion after South Korean steel giant POSCO moved to increase its stake in the Roy Hill iron ore project.
POSCO last week announced it would pay KRW 1.8 trillion (AUD 1.5 billion) to raise its interest in the project to 15% by mid 2014.
POSCO the world's third-largest steelmaker, already owns 3.75% of Roy Hill. The deal places an estimated value of AUD 10 billion on the project in Western Australia's Pilbara region.
Roy Hill is a joint venture between Ms Rinehart's company Hancock Prospecting and Posco, which says it is still in talks to finalise the purchase.
POSCO announced its intention to acquire 15% of Roy Hill in 2010 but did not reveal the value of the deal until last week.
(Sourced from ABC/Reuters)
Wednesday, January 25, 2012
Bulgarian coal miners end strike
Wednesday, 25 Jan 2012
Bulgarian miners are resuming work at the country's biggest coal mines, ending a weeklong strike that led to a halt in electricity exports to neighboring countries.
Union leader Konstantin Trenchev said on Sunday that a compromise deal has been struck with management that includes cash bonuses for the miners and an improvement in working conditions.
The three open pit mines of the state-owned company supply coal to four thermal power plants, whose output covers a quarter of the country's electricity needs.
Bulgaria also helps supply Greece, Turkey, Serbia and Macedonia but had to suspend exports due to the strike. The Balkan country exports more than 10 billion kilowatt hours of electricity per year.
It was not immediately clear when power exports will be restarted.
(Sourced from Associated Press)
Bulgarian miners are resuming work at the country's biggest coal mines, ending a weeklong strike that led to a halt in electricity exports to neighboring countries.
Union leader Konstantin Trenchev said on Sunday that a compromise deal has been struck with management that includes cash bonuses for the miners and an improvement in working conditions.
The three open pit mines of the state-owned company supply coal to four thermal power plants, whose output covers a quarter of the country's electricity needs.
Bulgaria also helps supply Greece, Turkey, Serbia and Macedonia but had to suspend exports due to the strike. The Balkan country exports more than 10 billion kilowatt hours of electricity per year.
It was not immediately clear when power exports will be restarted.
(Sourced from Associated Press)
Wednesday, January 11, 2012
Malawi, Brazil's Vale ink $1 bln rail line deal
Wed Jan 11, 2012
JOHANNESBURG Jan 11 (Reuters) - Malawi said on Wednesday it has signed a $1 billion deal with Brazil's Vale for the construction and rehabilitation of a rail line that will transport 18 million tonnes of coal from Mozambique.
"Vale will invest about $1 billion in Malawi over a period of three years for construction and rehabilitation of the railway line and it is expected to employ 4,500 workers of which 70 percent will be Malawians," Minister of Transport Sidick Mia told Reuters.
(sourced Reuters)
JOHANNESBURG Jan 11 (Reuters) - Malawi said on Wednesday it has signed a $1 billion deal with Brazil's Vale for the construction and rehabilitation of a rail line that will transport 18 million tonnes of coal from Mozambique.
"Vale will invest about $1 billion in Malawi over a period of three years for construction and rehabilitation of the railway line and it is expected to employ 4,500 workers of which 70 percent will be Malawians," Minister of Transport Sidick Mia told Reuters.
(sourced Reuters)
Thursday, November 3, 2011
Rio Tinto boosts driverless truck fleet to 150
Thursday, 03 Nov 2011
Rio Tinto is to become the owner of the world’s largest fleet of driverless trucks after it signed a deal to buy at least 150 from Komatsu Limited over the next four years. The new trucks, which will start arriving in 2012, will be used in Rio Tinto’s Pilbara iron ore mines in Western Australia and can be controlled from its Operations Centre in Perth more than 1500km away.
The move signals a 15 fold expansion from its previous plan to double the fleet to 10 trucks. This is the latest development in Rio Tinto’s Mine of the Future program which introduces next-generation technologies for mining operations with the aim of reducing costs, increasing efficiency and improving health, safety and environmental performance. Implementing autonomous haulage on this scale means more material can be moved more quickly and safely, creating a direct increase in productivity.
In Tokyo Mr Tom Albanese CEO of Rio Tinto and Komatsu Limited president and chief executive officer Mr Kunio Noji signed a Memorandum of Understanding for the supply and purchase of the trucks.
Mr Albanese said that “This announcement further reinforces our longstanding alliance with Komatsu. We have been partnering with Komatsu, using their advanced truck technology at our mines, for almost 20 years. Autonomous haulage is an important component in our Mine of the Future program. These 150 new trucks will work with our pioneering Operations Centre that integrates and manages the logistics of 14 mines, three ports and two railways. These technologies are revolutionising the way large scale mining is done, creating attractive hi-tech jobs, and helping us to improve safety and environmental performance and reduce carbon emissions.”
Rio Tinto has been testing the Komatsu Autonomous Haulage System, the world's first commercial autonomous mining haulage system, in the Pilbara since December 2008. During the trials the AHS technology demonstrated benefits in health, safety and productivity. Elsewhere in its Mine of the Future program, Rio Tinto will begin more widespread deployment of its automated drills, both in the Pilbara and at coal and copper mines.
Tuesday, November 1, 2011
Greek referendum threatens new euro zone crisis
Tue Nov 1, 2011
ATHENS (Reuters) - Prime Minister George Papandreou's shock announcement that he will put Greece's bailout to a referendum threatened to intensify the euro zone crisis, and brought complaints in Germany that Athens is trying to wriggle out of the deal.
Euro zone leaders agreed last week to hand Athens a second, 130 billion-euro ($179 billion) bailout and a 50-percent write-down on its huge debt. The price of the package is a program of harsh state spending cuts that have unleashed a tide of anger among Greeks.
Papandreou, whose ruling Socialist party has suffered several defections as it pushes waves of austerity measures through parliament while protesters rally outside, said he needed wider political backing for the fiscal measures and structural reforms demanded by international lenders.
A leader in German Chancellor Angela Merkel's center-right coalition said on Tuesday he was "irritated" by Papandreou's announcement.
"This sounds to me like someone is trying to wriggle out of what was agreed -- a strange thing to do," said Rainer Bruederle, parliamentary floor leader for the Free Democrats.
"One can only do one thing: make the preparations for the eventuality that there is a state insolvency in Greece and if it doesn't fulfill the agreements, then the point will have been reached where the money is turned off."
Analysts said the latest opinion poll showed a majority of Greeks took a negative view of the bailout deal.
The renewed uncertainty will be likely be an embarrassment for G20 leaders in France this week trying to coax China into throwing the euro zone a financial lifeline.
"If there was to be a referendum, we may reasonably conclude that they may not accept the austerity measures. We may conclude that it will bring the pack of cards tumbling down," Howard Wheeldon, senior strategist at BGC Partners in London, said.
Early reactions to the surprise move ranged from accusations that Papandreou was gambling with the country's future and predictions of default, to questions over the legality of the referendum and statements by lawmakers that a "No" vote would force his resignation and early elections.
Nobel prize-winning economist Christopher Pissarides caught the mood of uncertainty: "It is difficult to predict what will happen to Greece if they reject it. It will be bad enough for the European Union and the euro zone in particular, but it will be far worse for Greece.
"In the scenario of a 'No' vote Greece would declare bankruptcy immediately, they would default immediately. I can't see them staying within the euro," he said.
REFERENDUM ON MEMBERSHIP
"The situation is so tight that basically it would be a vote over their euro membership," Finland's Europe Minister Alexander Stubb told broadcaster MTV3.
Greek Finance Minister Evangelos Venizelos also warned citizens that euro zone membership was at stake. "It's crunch time," he told lawmakers on Monday.
"Citizens will have to answer the question: are we for Europe, the eurozone and the euro?"
Early on Tuesday, Venizelos checked into an Athens hospital with stomach pains but was expected to be discharged later.
Analysts were divided over whether Greek voters would accept the deal, but agreed that a damaging month or two of market volatility lay ahead while pollsters repeatedly took the Greek voters' pulse and European leaders looked on nervously.
The immediate market reaction to the announcement was negative, the euro extending losses against the dollar and tumbling more than 2 percent to a session low.
European shares were seen opening lower on Tuesday.
Opposition New Democracy leader Antonis Samaras will visit President Karolos Papoulias on Tuesday to discuss developments and push for snap elections, party officials said.
"Mr. Papandreou is dangerous, he tosses Greece's EU membership like a coin in the air," party spokesman Yannis Michelakis said. "He cannot govern and instead of withdrawing honorably, he dynamites everything."
UP TO THE VOTERS
Papandreou told the Greek voters it was up to them to decide the country's fate.
"We trust citizens, we believe in their judgment, we believe in their decision," he told Socialist party deputies. "In a few weeks the (EU) agreement will be a new loan contract... we must spell out if we are accepting it or if we are rejecting it."
Papandreou, grappling with Greece's worst financial crisis in 40 years, said the referendum would take place in a few weeks. Finance Minister Evangelos Venizelos told Greek TV it would probably be held early next year.
Opposition parties accused Papandreou of looking for a way out for his embattled party by dragging Greece, which has seen violent clashes between anti-austerity protesters and riot police, through a lengthy period of political instability.
"I never expected Papandreou to take such a dangerous and frivolous decision," said Dora Bakoyanni, former foreign minister and leader of the small center-right Democratic Alliance party. "All the international media will say that Greece itself is putting the EU deal at risk."
Greek newspapers on Tuesday also harshly criticized Papandreou for his choice. "More uncertainty is the last thing that Greece needs right now," said conservative newspaper Kathimerini in its lead editorial.
"The country will certainly paralyze amid endless debates -- the government, the state apparatus and institutions won't work," the newspaper added.
Papandreou also said he would ask for a vote of confidence to secure support for his policy for the rest of his four-year term, which expires in 2013.
Analysts said he was likely to win that, despite dissent among his parliamentary team, and parliament officials said the confidence debate would begin on Wednesday, with a vote on Thursday or Friday.
MONEY RUNNING OUT?
Greece is due to receive an 8 billion-euro tranche in mid-November, but that is likely to run out during January, around the time of the referendum, leaving the government with no funds if there is a "no" vote.
Germany issued a statement saying the EU was working hard to put the second Greek aid package in place by the end of the year and had no comment on the referendum.
Swinging opinion polls would leave markets fluctuating and Greece's EU partners dangling.
A survey carried out on Saturday showed that nearly 60 percent of Greeks viewed the agreement on the bailout package as negative or probably negative.
But David Lea of Control Risks struck a more positive note. "It's all in the question. If he can frame it as a sufficiently apple-pie issue, he stands some chance of winning," he said.
Some parliamentarians questioned the legality of the planned plebiscite under the constitution, which does not allow referendums on economic issues, only on matters of great national importance.
The last time Greeks held a referendum was in December 1974, when they voted to abolish the monarchy shortly after the collapse of a military dictatorship.
To be binding, a referendum result requires a minimum 40 percent turnout on issues of "crucial national importance" and 50 percent on a law that has already been voted on in parliament and "regulates a serious social issue," according to legislation enacted this year. It was not clear which option the government would favor.
"If the referendum answer is no, Papandreou has to resign," said Costas Panagopoulos, an analyst at polling firm Alco.
"In the meantime what will happen with the decisions the EU took last week? I cannot understand what the prime minister wants to do."
(sourced Reuters)
ATHENS (Reuters) - Prime Minister George Papandreou's shock announcement that he will put Greece's bailout to a referendum threatened to intensify the euro zone crisis, and brought complaints in Germany that Athens is trying to wriggle out of the deal.
Euro zone leaders agreed last week to hand Athens a second, 130 billion-euro ($179 billion) bailout and a 50-percent write-down on its huge debt. The price of the package is a program of harsh state spending cuts that have unleashed a tide of anger among Greeks.
Papandreou, whose ruling Socialist party has suffered several defections as it pushes waves of austerity measures through parliament while protesters rally outside, said he needed wider political backing for the fiscal measures and structural reforms demanded by international lenders.
A leader in German Chancellor Angela Merkel's center-right coalition said on Tuesday he was "irritated" by Papandreou's announcement.
"This sounds to me like someone is trying to wriggle out of what was agreed -- a strange thing to do," said Rainer Bruederle, parliamentary floor leader for the Free Democrats.
"One can only do one thing: make the preparations for the eventuality that there is a state insolvency in Greece and if it doesn't fulfill the agreements, then the point will have been reached where the money is turned off."
Analysts said the latest opinion poll showed a majority of Greeks took a negative view of the bailout deal.
The renewed uncertainty will be likely be an embarrassment for G20 leaders in France this week trying to coax China into throwing the euro zone a financial lifeline.
"If there was to be a referendum, we may reasonably conclude that they may not accept the austerity measures. We may conclude that it will bring the pack of cards tumbling down," Howard Wheeldon, senior strategist at BGC Partners in London, said.
Early reactions to the surprise move ranged from accusations that Papandreou was gambling with the country's future and predictions of default, to questions over the legality of the referendum and statements by lawmakers that a "No" vote would force his resignation and early elections.
Nobel prize-winning economist Christopher Pissarides caught the mood of uncertainty: "It is difficult to predict what will happen to Greece if they reject it. It will be bad enough for the European Union and the euro zone in particular, but it will be far worse for Greece.
"In the scenario of a 'No' vote Greece would declare bankruptcy immediately, they would default immediately. I can't see them staying within the euro," he said.
REFERENDUM ON MEMBERSHIP
"The situation is so tight that basically it would be a vote over their euro membership," Finland's Europe Minister Alexander Stubb told broadcaster MTV3.
Greek Finance Minister Evangelos Venizelos also warned citizens that euro zone membership was at stake. "It's crunch time," he told lawmakers on Monday.
"Citizens will have to answer the question: are we for Europe, the eurozone and the euro?"
Early on Tuesday, Venizelos checked into an Athens hospital with stomach pains but was expected to be discharged later.
Analysts were divided over whether Greek voters would accept the deal, but agreed that a damaging month or two of market volatility lay ahead while pollsters repeatedly took the Greek voters' pulse and European leaders looked on nervously.
The immediate market reaction to the announcement was negative, the euro extending losses against the dollar and tumbling more than 2 percent to a session low.
European shares were seen opening lower on Tuesday.
Opposition New Democracy leader Antonis Samaras will visit President Karolos Papoulias on Tuesday to discuss developments and push for snap elections, party officials said.
"Mr. Papandreou is dangerous, he tosses Greece's EU membership like a coin in the air," party spokesman Yannis Michelakis said. "He cannot govern and instead of withdrawing honorably, he dynamites everything."
UP TO THE VOTERS
Papandreou told the Greek voters it was up to them to decide the country's fate.
"We trust citizens, we believe in their judgment, we believe in their decision," he told Socialist party deputies. "In a few weeks the (EU) agreement will be a new loan contract... we must spell out if we are accepting it or if we are rejecting it."
Papandreou, grappling with Greece's worst financial crisis in 40 years, said the referendum would take place in a few weeks. Finance Minister Evangelos Venizelos told Greek TV it would probably be held early next year.
Opposition parties accused Papandreou of looking for a way out for his embattled party by dragging Greece, which has seen violent clashes between anti-austerity protesters and riot police, through a lengthy period of political instability.
"I never expected Papandreou to take such a dangerous and frivolous decision," said Dora Bakoyanni, former foreign minister and leader of the small center-right Democratic Alliance party. "All the international media will say that Greece itself is putting the EU deal at risk."
Greek newspapers on Tuesday also harshly criticized Papandreou for his choice. "More uncertainty is the last thing that Greece needs right now," said conservative newspaper Kathimerini in its lead editorial.
"The country will certainly paralyze amid endless debates -- the government, the state apparatus and institutions won't work," the newspaper added.
Papandreou also said he would ask for a vote of confidence to secure support for his policy for the rest of his four-year term, which expires in 2013.
Analysts said he was likely to win that, despite dissent among his parliamentary team, and parliament officials said the confidence debate would begin on Wednesday, with a vote on Thursday or Friday.
MONEY RUNNING OUT?
Greece is due to receive an 8 billion-euro tranche in mid-November, but that is likely to run out during January, around the time of the referendum, leaving the government with no funds if there is a "no" vote.
Germany issued a statement saying the EU was working hard to put the second Greek aid package in place by the end of the year and had no comment on the referendum.
Swinging opinion polls would leave markets fluctuating and Greece's EU partners dangling.
A survey carried out on Saturday showed that nearly 60 percent of Greeks viewed the agreement on the bailout package as negative or probably negative.
But David Lea of Control Risks struck a more positive note. "It's all in the question. If he can frame it as a sufficiently apple-pie issue, he stands some chance of winning," he said.
Some parliamentarians questioned the legality of the planned plebiscite under the constitution, which does not allow referendums on economic issues, only on matters of great national importance.
The last time Greeks held a referendum was in December 1974, when they voted to abolish the monarchy shortly after the collapse of a military dictatorship.
To be binding, a referendum result requires a minimum 40 percent turnout on issues of "crucial national importance" and 50 percent on a law that has already been voted on in parliament and "regulates a serious social issue," according to legislation enacted this year. It was not clear which option the government would favor.
"If the referendum answer is no, Papandreou has to resign," said Costas Panagopoulos, an analyst at polling firm Alco.
"In the meantime what will happen with the decisions the EU took last week? I cannot understand what the prime minister wants to do."
(sourced Reuters)
NUM concludes 2 year wage deal with Exxarro Coal
Tuesday, 01 Nov 2011
The National Union of Mineworkers concluded a two year wage deal with Exxarro Coal on Monday.
Mr Lesiba Seshoka spokesperson of NUM said “The agreement entails a 10.5% wage increment for grade eight, 10% for grade seven, 9% for grade five and six, as well as 8% for grades three and four.”
At the centre of the wage disputes was the demand that four of Exxarro Coal's operations that currently do not belong to the Chamber of Mines should join it.
Seshoka said that an agreement was reached for a task team to be set up within three months to help ensure that those operations joined the Chamber of Mines by 2013.
(sourced from IOL.co.za
The National Union of Mineworkers concluded a two year wage deal with Exxarro Coal on Monday.
Mr Lesiba Seshoka spokesperson of NUM said “The agreement entails a 10.5% wage increment for grade eight, 10% for grade seven, 9% for grade five and six, as well as 8% for grades three and four.”
At the centre of the wage disputes was the demand that four of Exxarro Coal's operations that currently do not belong to the Chamber of Mines should join it.
Seshoka said that an agreement was reached for a task team to be set up within three months to help ensure that those operations joined the Chamber of Mines by 2013.
(sourced from IOL.co.za
Thursday, October 27, 2011
Mongolia needs coal deal in 3 months to ensure IPO goes ahead
Thursday, 27 Oct 2011
Reuters reported that a contentious investment agreement on Mongolia huge Tavan Tolgoi coal deposit needs to be completed within three months to ensure that a much-heralded initial public offering for the project goes ahead on time.
Mr Terbishdagva Dendev a member of Mongolia Grand Khural parliament said on the sidelines of a conference in Hong Kong that discussions on an investment agreement for the western block of the coveted 7.5 billion tonne deposit were expected to get underway in November.
Mongolia plans to open the western block of the vast deposit up to foreign investors while the eastern block will be listed on international stock markets next year. An initial plan to grant 40% of the project to China Shenhua Group, 36% to a Russian-Mongolian consortium and 24% to Peabody Energy Corp of the United States was rejected by the Mongolian Security Council and branded as unfair by bidders from Japan and South Korea.
Mr Graeme Hancock chief operations officer with Erdenes Tavan Tolgoi the state owned entity in charge of the project told the conference that the scale of the IPO for the eastern block would depend on the investment agreement.
He said that "Once the terms of engagement on the west block are clear, that will have an impact on the IPO valuation. I am hoping there will be resolution on this in the very near future so this can be built into our future cash flow."
Mr Terbishdagva said that if an agreement was not signed within three months, the international IPO would have to wait until after Mongolia's parliamentary elections in June.
Analysts have expressed concern that political jockeying ahead of next year's elections was disrupting Mongolia's economy and harming its investment climate.
(sourced from Reuters)
Reuters reported that a contentious investment agreement on Mongolia huge Tavan Tolgoi coal deposit needs to be completed within three months to ensure that a much-heralded initial public offering for the project goes ahead on time.
Mr Terbishdagva Dendev a member of Mongolia Grand Khural parliament said on the sidelines of a conference in Hong Kong that discussions on an investment agreement for the western block of the coveted 7.5 billion tonne deposit were expected to get underway in November.
Mongolia plans to open the western block of the vast deposit up to foreign investors while the eastern block will be listed on international stock markets next year. An initial plan to grant 40% of the project to China Shenhua Group, 36% to a Russian-Mongolian consortium and 24% to Peabody Energy Corp of the United States was rejected by the Mongolian Security Council and branded as unfair by bidders from Japan and South Korea.
Mr Graeme Hancock chief operations officer with Erdenes Tavan Tolgoi the state owned entity in charge of the project told the conference that the scale of the IPO for the eastern block would depend on the investment agreement.
He said that "Once the terms of engagement on the west block are clear, that will have an impact on the IPO valuation. I am hoping there will be resolution on this in the very near future so this can be built into our future cash flow."
Mr Terbishdagva said that if an agreement was not signed within three months, the international IPO would have to wait until after Mongolia's parliamentary elections in June.
Analysts have expressed concern that political jockeying ahead of next year's elections was disrupting Mongolia's economy and harming its investment climate.
(sourced from Reuters)
Monday, October 24, 2011
NMDC to buy four more iron ore assets abroad - Report
Monday, 24 Oct 2011
It is reported that state owned iron ore miner NMDC which had entered into a deal to acquire 50% stake in Australia Legacy Iron Ore last month, is likely to decide on acquiring four more properties overseas by the end of this month.
A source close to the development said "The company board is likely to meet this week to take a final call on these properties. Of these, two properties an iron ore mine and a phosphate mine are in Australia while the third one is an iron ore deposit in Brazil and the fourth a coking coal asset of Russia Vincy Coal.”
The source said "All these are going to be low cost acquisitions, totaling USD 500 million. This would include payment of initial development cost incurred by the holding companies."
Adding that the company board had also met on October 10 to decide on the proposals, the source said that some unanswered issues are likely to decide in the forthcoming board meeting.
The source said the iron ore asset in Australia is certified by the Joint Ore Reserves Committee code of the country and is a large asset, adding that NMDC was looking to acquire a minimum of 50% stake in the asset.
Refusing to name the asset, the source said that it is proposed to be acquired through Legacy Iron Ore which will be used by NMDC as the launching platform in Australia.
(sourced Business-standard)
It is reported that state owned iron ore miner NMDC which had entered into a deal to acquire 50% stake in Australia Legacy Iron Ore last month, is likely to decide on acquiring four more properties overseas by the end of this month.
A source close to the development said "The company board is likely to meet this week to take a final call on these properties. Of these, two properties an iron ore mine and a phosphate mine are in Australia while the third one is an iron ore deposit in Brazil and the fourth a coking coal asset of Russia Vincy Coal.”
The source said "All these are going to be low cost acquisitions, totaling USD 500 million. This would include payment of initial development cost incurred by the holding companies."
Adding that the company board had also met on October 10 to decide on the proposals, the source said that some unanswered issues are likely to decide in the forthcoming board meeting.
The source said the iron ore asset in Australia is certified by the Joint Ore Reserves Committee code of the country and is a large asset, adding that NMDC was looking to acquire a minimum of 50% stake in the asset.
Refusing to name the asset, the source said that it is proposed to be acquired through Legacy Iron Ore which will be used by NMDC as the launching platform in Australia.
(sourced Business-standard)
Saturday, October 22, 2011
Serbia and China ink deal for coal plant and mine
Saturday, 22 Oct 2011
Reuters reported that Serbia power utility Elektroprivreda Srbije has signed a preliminary deal with a Chinese consortium to jointly build a 744 megawatt coal fired unit at an estimated cost of more than EUR 2 billion.
EPS said in a statement under the deal, the consortium that includes China Environmental Energy Holdings Co Ltd and Shenzhen Energy Group Co Ltd and EPS will form a joint venture for the future project.
It said the project includes the construction of the coal fired unit in the South Western town of Obrenovac part of its Nikola Tesla power complex and upgrade of the Radeljevo coal mine that will feed the plant.
EPS said it also agreed with Chinese partners to define future cooperation on a number of renewable energy projects in particular biomass but provided no further detail.
The deal is the latest in a series of energy projects agreed over the past two years with China which was considered the Balkan nation closest ally, along with Russia when Serbia faced international isolation in the 1990s.
Serbia produces 70% of its power in coal-fired plants and the rest from hydro power in 2010, EPS produced 36 GWh of electricity or 1% above the target with hydro output hitting a record level.
It urgently needs to upgrade its energy infrastructure, damaged and mismanaged during the Balkan wars of 1990s to meet growing demand and reduce future reliance on imports.
(Sourced from Reuters)
Reuters reported that Serbia power utility Elektroprivreda Srbije has signed a preliminary deal with a Chinese consortium to jointly build a 744 megawatt coal fired unit at an estimated cost of more than EUR 2 billion.
EPS said in a statement under the deal, the consortium that includes China Environmental Energy Holdings Co Ltd and Shenzhen Energy Group Co Ltd and EPS will form a joint venture for the future project.
It said the project includes the construction of the coal fired unit in the South Western town of Obrenovac part of its Nikola Tesla power complex and upgrade of the Radeljevo coal mine that will feed the plant.
EPS said it also agreed with Chinese partners to define future cooperation on a number of renewable energy projects in particular biomass but provided no further detail.
The deal is the latest in a series of energy projects agreed over the past two years with China which was considered the Balkan nation closest ally, along with Russia when Serbia faced international isolation in the 1990s.
Serbia produces 70% of its power in coal-fired plants and the rest from hydro power in 2010, EPS produced 36 GWh of electricity or 1% above the target with hydro output hitting a record level.
It urgently needs to upgrade its energy infrastructure, damaged and mismanaged during the Balkan wars of 1990s to meet growing demand and reduce future reliance on imports.
(Sourced from Reuters)
Friday, October 21, 2011
Rio Tinto negotiates Portugal iron ore deal -sources
Fri Oct 21, 2011
LISBON Oct 21 (Reuters) - Mining giant Rio Tinto is negotiating with Portugal's government for a concession to mine iron ore in the north of the country in an investment worth more than 1 billion euros, sources close to the talks said on Friday.
The investment in the mines of Torre de Moncorvo would represent a big boost for the country, which sorely needs foreign investment at a time of deep recession, as it cuts spending to meet budget goals under a 78 billion euro ($107 billion) bailout.
Two sources with knowledge of the negotiations said an agreement should be reached by year-end.
The mines in Torre de Moncorvo were deactivated in the 1980s as they were not economically viable at the time. But Portugal has rich mineral deposits, including copper in the south of the country.
The economy ministry would not say if it was in talks with Rio Tinto, but a spokeswoman said "we are developing contacts and negotiations with various companies, some of them from the mining sector, to attract big investments to Portugal".
Rio Tinto would not comment.
(source Reuters)
LISBON Oct 21 (Reuters) - Mining giant Rio Tinto is negotiating with Portugal's government for a concession to mine iron ore in the north of the country in an investment worth more than 1 billion euros, sources close to the talks said on Friday.
The investment in the mines of Torre de Moncorvo would represent a big boost for the country, which sorely needs foreign investment at a time of deep recession, as it cuts spending to meet budget goals under a 78 billion euro ($107 billion) bailout.
Two sources with knowledge of the negotiations said an agreement should be reached by year-end.
The mines in Torre de Moncorvo were deactivated in the 1980s as they were not economically viable at the time. But Portugal has rich mineral deposits, including copper in the south of the country.
The economy ministry would not say if it was in talks with Rio Tinto, but a spokeswoman said "we are developing contacts and negotiations with various companies, some of them from the mining sector, to attract big investments to Portugal".
Rio Tinto would not comment.
(source Reuters)
Monday, October 10, 2011
Xstrata to buy metallurgical coal deposit from Cline Mining
Monday, 10 Oct 2011
The Canadian Press reported that Xstrata Coal has agreed to pay CAD 40 million to Cline Mining Corp to acquire 100% of a metallurgical coal deposit within the Lossan property in north eastern British Columbia.
The deposit has an estimated 240 million tonnes of metallurgical coal. The Lossan deposit covers about 3,800 hectares in the Peace River coalfield.
The deal is expected to close October 12.
Mr Ken Bates president and CEO said in a statement “The sale of the Lossan metallurgical deposit provides Cline Mining with immediately available funds to ensure efficient ramp up and expansion of its New Elk metallurgical coal mine. It also provides the ability to avail itself of other strategic opportunities.”
(Sourced from The Canadian Press)
The Canadian Press reported that Xstrata Coal has agreed to pay CAD 40 million to Cline Mining Corp to acquire 100% of a metallurgical coal deposit within the Lossan property in north eastern British Columbia.
The deposit has an estimated 240 million tonnes of metallurgical coal. The Lossan deposit covers about 3,800 hectares in the Peace River coalfield.
The deal is expected to close October 12.
Mr Ken Bates president and CEO said in a statement “The sale of the Lossan metallurgical deposit provides Cline Mining with immediately available funds to ensure efficient ramp up and expansion of its New Elk metallurgical coal mine. It also provides the ability to avail itself of other strategic opportunities.”
(Sourced from The Canadian Press)
Saturday, October 1, 2011
NTPC plans long term steam coal offtake deal
Saturday, 01 Oct 2011
BS reported that NTPC is planning to strike a long term offtake deal with coal companies abroad to match its increasing demand. But due to the higher price range the firm might restrict the import component of the total coal use to 10%though it is looking for acquisition of coal blocks outside India.
Mr Arup Roy Choudhury NTPC Chairman and Managing Director said “We are thinking about signing a long term coal import deal with foreign companies. This would be vital, as we are planning to acquire some blocks in Indonesia, Australia and Mozambique,”
On the other hand, regarding the power producer plan to cap import component to 10 per cent he said that the aim is to source 70% of coal from the Kolkata based Coal India remaining 20% from the firm eight captive mines and about 10% from imports which include the production from acquired mines abroad. The company captive mines have a reserve of 1.8 billion tones. Set to come out of ICVL
Mr Choudhury said “The assets that ICVL had identified are mainly of coking coal. Which can only be used for steel industry requirements? While regarding the Indonesia plans of ICVL, the local government has also decided to ban exports of coal below that calorific value which could have been our requirement.”
The company’s coal requirement for the financial year 2011-12 would be around 160 million tonnes which is expected to zoom to 240 million tonnes in the next year. While this year, NTPC total CAPEX is INR 26,000 crore and it will require investments worth about INR 30,000 crore per year over the next 10 years for expansion plans.
(sourced BS)
BS reported that NTPC is planning to strike a long term offtake deal with coal companies abroad to match its increasing demand. But due to the higher price range the firm might restrict the import component of the total coal use to 10%though it is looking for acquisition of coal blocks outside India.
Mr Arup Roy Choudhury NTPC Chairman and Managing Director said “We are thinking about signing a long term coal import deal with foreign companies. This would be vital, as we are planning to acquire some blocks in Indonesia, Australia and Mozambique,”
On the other hand, regarding the power producer plan to cap import component to 10 per cent he said that the aim is to source 70% of coal from the Kolkata based Coal India remaining 20% from the firm eight captive mines and about 10% from imports which include the production from acquired mines abroad. The company captive mines have a reserve of 1.8 billion tones. Set to come out of ICVL
Mr Choudhury said “The assets that ICVL had identified are mainly of coking coal. Which can only be used for steel industry requirements? While regarding the Indonesia plans of ICVL, the local government has also decided to ban exports of coal below that calorific value which could have been our requirement.”
The company’s coal requirement for the financial year 2011-12 would be around 160 million tonnes which is expected to zoom to 240 million tonnes in the next year. While this year, NTPC total CAPEX is INR 26,000 crore and it will require investments worth about INR 30,000 crore per year over the next 10 years for expansion plans.
(sourced BS)
Tuesday, September 6, 2011
Sri Lanka, India US$500mn coal plant deal inked
Tue, 06Sep, 2011
Sept 06, 2011 (LBO) - Sri Lanka's state-run Ceylon Electricity Board and India's National Thermal Power Corporation inked a deal to build a 500MegaWatt coal plant in the island's northeast coast.
The 50/50 joint venture will begin construction at Sampur in Trincomalee, in late 2012 and is expected to be commissioned in 2016, CEB chairman Wimaladharma Abeywickrama said.
Sri Lanka's power ministry secretary M M C Ferdinando said the plant would cost 500 million US dollars.
Each partner would put 15 percent of the cost - about 75 million US dollars - as equity and the balance would come from multilateral and bilateral lenders and commercial sources.
The shareholder agreement was inked Tuesday in Colombo. The plant is structured as a build operate own (BOO) project.
India's power secretary Uma Shankar said financial closure would be in achieved in the next few months.
India is also giving a 200 million dollars loan to Sri Lanka's government to cover CEB's equity, jetty construction to unload coal and interconnection to the national grid.
India's envoy to Colombo Alok Kantha said the joint venture company would be registered after the signing and the preliminary work will be wrapped up for remaining agreements to be signed early in October.
The power purchase agreement, an agreement with Sri Lanka's Board of Investment and an implementation agreement have been already negotiated, he said.
The power purchase agreement (PPA) is based on 80 percent availability (plant factor), Shankar said.
Ferdinando said about 65 percent of Sri Lanka's power comes from thermal and the rest from renewable sources, mainly large hydros.
Officials say the plant will try to reduce its environmental impact.
"Ambient temperature around the plant will be about two degrees higher," NTPC chairman Arup Roy Choudhury said.
"We will try to make it as environmentally friendly as possible."
Sri Lanka is now operating a 300MW coal plant on the west coast of the island with Chinese financing, which will be upgraded to 900MW.
sourced Lankabusinessonline
Sept 06, 2011 (LBO) - Sri Lanka's state-run Ceylon Electricity Board and India's National Thermal Power Corporation inked a deal to build a 500MegaWatt coal plant in the island's northeast coast.
The 50/50 joint venture will begin construction at Sampur in Trincomalee, in late 2012 and is expected to be commissioned in 2016, CEB chairman Wimaladharma Abeywickrama said.
Sri Lanka's power ministry secretary M M C Ferdinando said the plant would cost 500 million US dollars.
Each partner would put 15 percent of the cost - about 75 million US dollars - as equity and the balance would come from multilateral and bilateral lenders and commercial sources.
The shareholder agreement was inked Tuesday in Colombo. The plant is structured as a build operate own (BOO) project.
India's power secretary Uma Shankar said financial closure would be in achieved in the next few months.
India is also giving a 200 million dollars loan to Sri Lanka's government to cover CEB's equity, jetty construction to unload coal and interconnection to the national grid.
India's envoy to Colombo Alok Kantha said the joint venture company would be registered after the signing and the preliminary work will be wrapped up for remaining agreements to be signed early in October.
The power purchase agreement, an agreement with Sri Lanka's Board of Investment and an implementation agreement have been already negotiated, he said.
The power purchase agreement (PPA) is based on 80 percent availability (plant factor), Shankar said.
Ferdinando said about 65 percent of Sri Lanka's power comes from thermal and the rest from renewable sources, mainly large hydros.
Officials say the plant will try to reduce its environmental impact.
"Ambient temperature around the plant will be about two degrees higher," NTPC chairman Arup Roy Choudhury said.
"We will try to make it as environmentally friendly as possible."
Sri Lanka is now operating a 300MW coal plant on the west coast of the island with Chinese financing, which will be upgraded to 900MW.
sourced Lankabusinessonline
Friday, September 2, 2011
Beadell Resources inks maiden iron resource in Brazil
Friday, 02 Sep 2011
Beadell Resources has achieved a better than expected maiden JORC itabirite iron ore resource estimate of 209.1 million tonnes at 36.1% iron from the Tap Norte Banded Iron Formation in Brazil. The estimate was conducted by independent consultant SRK and includes Measured and Indicated Resources of 75.4 million tonnes at 37.3% Fe.
Potential extensions from Tap Sul and Tap Leste areas alone are estimated to contain an additional 120 million tonnes to 180 million tonnes of itabirite iron ore, which are currently being aggressively drilled. This maiden iron ore resource is the culmination of a major drilling and resampling program completed over the last 15 months.
Mr Peter Bowler MD of Beadell said that “This is an outstanding maiden iron ore resource which will grow significantly over the coming months. We are in discussions with Anglo Ferrous in relation to these iron ore resources on our Mining Concession to either continue on with negotiations centred around a Joint Operating Agreement whereby Anglo pay for iron ore extracted out of our gold pits or, our preferred outcome, to go it alone if the parties are unable to reach agreement on the terms of such a Joint Operating Agreement in respect of Beadell’s Mining Concession."
The company will now commence a detailed Scoping Study which will include a beneficiation plant and all associated logistics.
Beadell is bullish that the outcome of negotiations will either materially improve the economics of the gold project or, alternatively, enable the company to proceed with a substantial iron ore business on a standalone basis.
(sourced Proactiveinvestors)
Beadell Resources has achieved a better than expected maiden JORC itabirite iron ore resource estimate of 209.1 million tonnes at 36.1% iron from the Tap Norte Banded Iron Formation in Brazil. The estimate was conducted by independent consultant SRK and includes Measured and Indicated Resources of 75.4 million tonnes at 37.3% Fe.
Potential extensions from Tap Sul and Tap Leste areas alone are estimated to contain an additional 120 million tonnes to 180 million tonnes of itabirite iron ore, which are currently being aggressively drilled. This maiden iron ore resource is the culmination of a major drilling and resampling program completed over the last 15 months.
Mr Peter Bowler MD of Beadell said that “This is an outstanding maiden iron ore resource which will grow significantly over the coming months. We are in discussions with Anglo Ferrous in relation to these iron ore resources on our Mining Concession to either continue on with negotiations centred around a Joint Operating Agreement whereby Anglo pay for iron ore extracted out of our gold pits or, our preferred outcome, to go it alone if the parties are unable to reach agreement on the terms of such a Joint Operating Agreement in respect of Beadell’s Mining Concession."
The company will now commence a detailed Scoping Study which will include a beneficiation plant and all associated logistics.
Beadell is bullish that the outcome of negotiations will either materially improve the economics of the gold project or, alternatively, enable the company to proceed with a substantial iron ore business on a standalone basis.
(sourced Proactiveinvestors)
Monday, August 29, 2011
Xtract Energy to raises GBP 3 million to fund Elko Energy acquisition
Monday, 29 Aug 2011
Xtract Energy announced it has raised GBP 3 million from institutional shareholders to help fund the acquisition of the outstanding 50% of shares it does not own in Elko Energy, an explorer of oil and gas offshore Denmark. Its shares have been restored from suspension.
The fundraiser comprises a placing of 240,000,000 new Xtract shares at a price of 1.25 pence, raising approximately GBP 3 million before expenses. Some of the funds raised will be used as working capital for the enlarged group.
Xtract also announced that it has entered into a conditional agreement with YA Global Master SPV to provide potential future funding of up to GBP 12.5 million as part of an equity line facility.
The Elko deal involves Xtract acquired outstanding Elko Energy for 350,245,343 new Xtract shares, which represents approximately 23.3 per cent of the enlarged share capital.
Re admission of the enlarged share capital is expected to take place on September 13th 2011. Following completion of the Elko acquisition, Xtract will no longer be an investing company for purposes of the AIM Rules.
The acquisition remains conditional on approvals by its shareholders. Irrevocable undertakings to vote in favour of the acquisition have already been given by Cambrian Investment Holdings, which holds 37.2% of the existing shares.
A number of directors have agreed to subscribe for, in aggregate, 17,600,000 placing shares at the placing price.
Mr Peter Moir CEO of Xtract Energy said that "We are very pleased to have successfully raised GBP 3 million, the net proceeds of which will be used to fund the costs associated with acquiring Elko Energy Inc and the ongoing working capital requirements of the company.
He added that “Since the new management team have come in, we have strengthened the balance sheet, appointed a new chairman and focused on core projects, while negotiating royalty arrangements for our non core assets, with significant upside potential. The acquisition of Elko and re listing of the company as an operating business completes the turnaround and we anticipate drilling the high impact Luna exploration well in Denmark during the fourth quarter of 2011.”
(sourced proactiveinvestors)
Xtract Energy announced it has raised GBP 3 million from institutional shareholders to help fund the acquisition of the outstanding 50% of shares it does not own in Elko Energy, an explorer of oil and gas offshore Denmark. Its shares have been restored from suspension.
The fundraiser comprises a placing of 240,000,000 new Xtract shares at a price of 1.25 pence, raising approximately GBP 3 million before expenses. Some of the funds raised will be used as working capital for the enlarged group.
Xtract also announced that it has entered into a conditional agreement with YA Global Master SPV to provide potential future funding of up to GBP 12.5 million as part of an equity line facility.
The Elko deal involves Xtract acquired outstanding Elko Energy for 350,245,343 new Xtract shares, which represents approximately 23.3 per cent of the enlarged share capital.
Re admission of the enlarged share capital is expected to take place on September 13th 2011. Following completion of the Elko acquisition, Xtract will no longer be an investing company for purposes of the AIM Rules.
The acquisition remains conditional on approvals by its shareholders. Irrevocable undertakings to vote in favour of the acquisition have already been given by Cambrian Investment Holdings, which holds 37.2% of the existing shares.
A number of directors have agreed to subscribe for, in aggregate, 17,600,000 placing shares at the placing price.
Mr Peter Moir CEO of Xtract Energy said that "We are very pleased to have successfully raised GBP 3 million, the net proceeds of which will be used to fund the costs associated with acquiring Elko Energy Inc and the ongoing working capital requirements of the company.
He added that “Since the new management team have come in, we have strengthened the balance sheet, appointed a new chairman and focused on core projects, while negotiating royalty arrangements for our non core assets, with significant upside potential. The acquisition of Elko and re listing of the company as an operating business completes the turnaround and we anticipate drilling the high impact Luna exploration well in Denmark during the fourth quarter of 2011.”
(sourced proactiveinvestors)
Friday, August 26, 2011
India's GVK reaches $2.2 bln Hancock mines deal-report
Fri Aug 26, 2011
* Board expected to meet within 10 days to approve deal
* GVK to pay $1.3 bln for mines, $900mln for infrastructure
MUMBAI/SYDNEY Aug 26 (Reuters) - India's GVK Power & Infra is close to finalising a deal to buy two Australian coal mines owned by Hancock Prospecting, said two sources with knowledge of the deal, which a newspaper report said has been agreed for $2.2 billion.
The GVK board, which constructs power plants and airports, will meet within 10 days to approve the deal, the Economic Times reported on Friday, citing lenders and company officials who are part of the negotiations.
GVK Power Chief Financial Officer Issac George declined to comment on the report, when reached by Reuters. Hancock was not immediately available for comment.
Hancock and GVK Power last month extended the deadline for exclusive talks until end August, sources had told Reuters. The two companies, which have been in talks since February this year, had extended the deadline twice before.
Standard Chartered , India's second-largest lender ICICI Bank and Axis Bank will fund the GVK transaction, the report said, adding Ernst & Young was advising the Indian company.
Shares in GVK were trading up 0.6 percent at 16.60 rupees at 0446 GMT in a Mumbai market that was up 0.3 percent. The GVK stock is down more than half this year compared with a 21 percent fall in the main market.
Some analysts and bankers have expressed doubts whether GVK, which the market values at about $567 million, would be able to pull off such a large acquisition.
India holds 10 percent of the world's coal reserves, but local supplies are falling short of demand as the country builds more power plants, and as domestic coal projects run into environmental and land acquisition delays.
Indian energy firms have been scouting for coal assets overseas to feed power plants at home, and have been raising funds for potential overseas acquisitions and expanding facilities.
S.Africa's Optimum Coal confirms bid interest
Fri Aug 26, 2011 | By Reuters
JOHANNESBURG (Reuters) - South Africa's Optimum Coal Holdings confirmed on Friday it had received expressions of interest from unnamed third parties, a day after sources close to the deal said commodities trader Glencore was eyeing the miner.
Optimum, South Africa's sixth-largest coal producer, said in a statement it had received "unsolicited, non-binding expressions of interest from third parties to acquire a controlling interest in Optimum".
At current prices, Optimum has a market capitalisation of around $1 billion.
"Shareholders are advised that there is currently no certainty that Optimum will receive a firm intention to make an offer from any party," it added, giving no further details.
Optimum had already issued a cautionary statement earlier this month, alerting investors to circumstances which could affect its share price, but had denied having been approached by any prospective buyer.
The sources close to the deal had told Reuters on Thursday that Glencore and South African partner Cyril Ramaphosa were talking to Optimum shareholders and were preparing to make an announcement.
Shareholders in Optimum confirmed they had received an offer from the commodities giant and Ramaphosa, whose unlisted Shanduka Resources owns 30 percent of Shanduka Coal, a venture with Glencore.
Shanduka Coal, 70 percent owned by Glencore, has until recently been Glencore's vehicle for investment in coal mining in South Africa.
OCH, formerly owned by miner BHP Billiton, will produce 13.7 million tonnes of coal in 2011, up from 13.6 million in 2010.
JOHANNESBURG (Reuters) - South Africa's Optimum Coal Holdings confirmed on Friday it had received expressions of interest from unnamed third parties, a day after sources close to the deal said commodities trader Glencore was eyeing the miner.
Optimum, South Africa's sixth-largest coal producer, said in a statement it had received "unsolicited, non-binding expressions of interest from third parties to acquire a controlling interest in Optimum".
At current prices, Optimum has a market capitalisation of around $1 billion.
"Shareholders are advised that there is currently no certainty that Optimum will receive a firm intention to make an offer from any party," it added, giving no further details.
Optimum had already issued a cautionary statement earlier this month, alerting investors to circumstances which could affect its share price, but had denied having been approached by any prospective buyer.
The sources close to the deal had told Reuters on Thursday that Glencore and South African partner Cyril Ramaphosa were talking to Optimum shareholders and were preparing to make an announcement.
Shareholders in Optimum confirmed they had received an offer from the commodities giant and Ramaphosa, whose unlisted Shanduka Resources owns 30 percent of Shanduka Coal, a venture with Glencore.
Shanduka Coal, 70 percent owned by Glencore, has until recently been Glencore's vehicle for investment in coal mining in South Africa.
OCH, formerly owned by miner BHP Billiton, will produce 13.7 million tonnes of coal in 2011, up from 13.6 million in 2010.
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